Managers of FBL Financial Group Inc. say the firm has agreed to let sister company Farm Bureau Property & Casualty Insurance Company take it private.
The Iowa Farm Bureau Federation controls both companies.
Farm Bureau P&C plans to pay $56 per share, or a total of $528 million, to buy the shares of FBL Financial stock that neither Farm Bureau P&C nor the Iowa Farm Bureau Federation own, according to FBL Financial and Farm Bureau P&C.
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FBL Financial began talking about the possibility of going private in September. Farm Bureau P&C said at that time that it was offering to pay $440 million, or $47 per share, for the shares of FBL Financial stock held by public investors.
In October, the company announced that it had hired outside advisors to help it evaluate the Farm Bureau P&C offer.
Paul Larson, chairman of a special committee of FBL Financial directors that was formed to evaluate the offer, said in the deal release that the special committee’s focus has been on maximizing value for the company’s outside shareholders.
“This transaction delivers immediate cash value to them at a significant premium,” Larson said.
Farm Bureau P&C “has been a long-term partner of FBL Financial and shares our dedication to protecting the livelihoods and futures of our customers, and we are confident that this transaction is in the best interest of unaffiliated shareholders,” Larson said.
The companies need approval from regulators and FBL Financial shareholders to complete the deal. They said they hope to complete the deal by June 30.
FBL Financial is a West Des Moines, Iowa-based life insurer whose stock has traded on the New York Stock Exchange under the symbol FFG, since 1999.
The Iowa Farm Bureau Federation formed the P&C business in 1939 and the life business in 1944.
The Iowa Farm Bureau Federation owns 60% of FBL’s Class A Common stock and 67% of the company’s Class B common stock. It also controls the Farm Bureau P&C company.